EX-99.1 2 ex99-1.htm EXHIBIT 99.1 PRESS RELEASE DATED FEBRUARY 14, 2007 Exhibit 99.1 Press Release dated February 14, 2007

P R E S S
R E L E A S E

Contacts:              Analytical Surveys, Inc.         Pfeiffer High Public Relations, Inc.
       Lori Jones                                        Geoff High
           Chief Executive Officer                       303/393-7044
           210/657-1500 
ANALYTICAL SURVEYS REPORTS FIRST QUARTER RESULTS

SAN ANTONIO, Texas — February 14, 2006 - Analytical Surveys, Inc. (ASI) (Nasdaq Capital Market: ANLT), a San Antonio-based oil and gas company focused on participation in non-operating exploration and production of U.S. onshore oil and natural gas reserves, and formerly a service provider to the geographic information systems (GIS) markets, today announced financial results for its first fiscal quarter ended December 31, 2006.

First quarter revenue was $243,000 versus $1.3 million in the same period a year ago. Net loss available to common shareholders was $337,000, or $0.09 per diluted share, versus a net loss of $43,000, or $0.01 per diluted share, in the first quarter last year. The lower revenue and higher net loss resulted from the Company’s transition from a GIS service provider into an oil and gas company.

Lori Jones, CEO of ASI, said, “We successfully completed our GIS service contracts, which generated substantial cash flow during the quarter. We have kept our overhead to a minimum while we work to build a meaningful presence for our ASI Energy Division within the oil and gas industry. We are pleased by the progress we have made in this regard, and intend to build on this momentum throughout fiscal 2007.”

The company also announced its decision not to acquire a non-operating working interest in the Texas gulf coast region as previously announced in a press release dated January 9, 2007. After significant due diligence, the Company has decided not to close on the purchase of a non-operating interest in 5 wells located in Liberty and Wharton counties, Texas.

Lori Jones, CEO of ASI said, “Although the pricing scenario and other pertinent data, including an in-depth engineering study, indicated the acquisition of the wells to be a viable purchase, the cost of capital required for financing the purchase would have made the transaction only marginally successful. We therefore have determined this transaction is not in the best interest of the Company or our shareholders at this time. However, we continue to pursue our conservative drilling program along with our operating partners, H&S Production and South Texas Operating Company as we look for other production acquisition opportunities.”

Analytical Surveys, Inc., which has historically served the GIS markets, has recently transitioned its focus toward the development of oil and gas exploration and production opportunities. ASI’s Energy Division is focused on high-quality exploratory and developmental drilling opportunities, as well as purchases of proven reserves with upside potential attributable to behind-pipe reserves, infill drilling, deeper reservoirs and field extension opportunities. ASI is headquartered in San Antonio, Texas. For more information, visit www.asienergy.com.

 
 
 
 
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding the Company's strategy, future sales, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Item 1. Business--"risk factors" and elsewhere in the Company's Annual Report on Form 10-KSB.


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ANALYTICAL SURVEYS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

Assets
  
December 31,
2006
  
September 30,
2006
  
Current assets:
  
(Unaudited)
      
Cash and cash equivalents
  
$
1,284
  
$
1,357
  
Accounts receivable, net of allowance for doubtful accounts of $0 and $50 at December 31 and September 30, 2006, respectively
    
147
    
1,322
  
Revenue earned in excess of billings, net
    
—
    
49
  
Prepaid expenses and other
    
55
    
93
  
Deferred financing costs
    
168
    
133
  
Total current assets
    
1,654
    
2,954
  
Oil and natural gas properties and equipment; full cost method of accounting
    
2,319
    
2,019
  
Equipment and leasehold improvements, at cost:
              
Equipment
    
335
    
570
  
Furniture and fixtures
    
48
    
98
  
Leasehold improvements
    
8
    
1
  
     
391
    
669
  
Less accumulated depreciation and amortization
    
(359
)
  
(605
)
Net equipment and leasehold improvements
    
32
    
64
  
Other assets
    
150
    
—
  
Total assets
  
$
4,155
  
$
5,037
  
Liabilities and Stockholders’ Equity
              
Current liabilities:
              
Senior secured convertible note, net of discount
  
$
1,400
  
$
1,957
  
Current portion of capital lease obligations
    
16
    
16
  
Billings in excess of revenue earned
    
—
    
99
  
Accounts payable
    
112
    
45
  
Accrued liabilities
    
74
    
239
  
Accrued payroll and related benefits
    
96
    
132
  
Total current liabilities
    
1,698
    
2,488
  
Long-term debt:
              
Capital lease obligations, less current portion
    
9
    
13
  
Total long-term liabilities
    
9
    
13
  
Total liabilities
    
1,707
    
2,501
  
Commitments and contingencies
              
Stockholders’ equity:
              
Convertible preferred stock, no par value; authorized 2,500 shares; 280 issued and outstanding at December 31 and September 30, 2006
    
261
    
261
  
Common stock, no par value; authorized 100,000 shares; 3,779 shares issued and outstanding at December 31 and September 30, 2006
    
36,590
    
36,341
  
Accumulated deficit
    
(34,403
)
  
(34,066
)
Total stockholders’ equity
    
2,448
    
2,536
  
Total liabilities and stockholders’ equity
  
$
4,155
  
$
5,037
  



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ANALYTICAL SURVEYS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

   
Three Months Ended
  
   
December 31
  
   
2006
  
2005
  
           
Revenues
          
GIS services
  
$
240
  
$
1,360
  
Oil and gas
   
3
    
—
  
Total revenues
    
243
    
1,360
  
               
Costs and expenses:
              
Salaries, wages and benefits
    
221
    
781
  
Subcontractor costs
    
—
    
139
  
Other general and administrative
    
186
    
452
  
Depreciation, depletion and amortization
    
5
    
21
  
Total operating costs
    
412
    
1,393
  
Loss from operations
    
(169
)
  
(33
)
Other income (expense):
              
Interest expense, net
    
(99
)
  
(13
)
Gain (loss) on sale of assets
    
(28
)
  
3
  
Other income (expense), net
   
(36
)
  
—
  
Total other income (expense), net
    
(163
)
  
(10
)
Loss before income taxes
    
(332
)
  
(43
)
Provision for income taxes
    
—
    
—
  
Net loss
    
(332
)
  
(43
)
Dividends on preferred stock
    
(5
)
  
—
  
Net loss available to common stockholders
  
$
(337
)
$
(43
)
               
Basic net loss per common share
 
$
(0.09
)
$
(0.01
)
Preferred stock dividends
    
—
    
—
  
Basic net loss per common share available to common shareholders
  
$
(0.09
)
$
(0.01
)
               
Diluted net loss per common share
 
$
(0.09
)
$
(0.01
)
Preferred stock dividends
    
—
    
—
  
Diluted net loss per common share available to common shareholders
  
$
(0.09
)
$
(0.01
)
               
Weighted average common shares:
              
Basic
    
3,779
    
2,869
  
Diluted
    
3,779
    
2,869